Monat: November 2024

• Bitwise files for a Solana ETF as SOL nears its all-time high of $259.
• Optimism grows with Trump’s election and SEC Chair Gary Gensler’s resignation.
• Competing firms like VanEck and 21Shares also seek Solana ETF approvals.

Crypto asset manager Bitwise has taken a significant step in expanding its exchange-traded fund (ETF) offerings by filing for a Solana (SOL) ETF in Delaware.

The filing, confirmed by Bitwise CEO Hunter Horsley, comes at a time of growing optimism in the crypto market, fueled by recent political developments and a resurgence in Solana’s price.

If approved, the ETF will provide institutional and retail investors with exposure to Solana, a blockchain platform renowned for its speed, scalability, and developer-friendly ecosystem.

As of now, Solana (SOL) is the fourth-largest cryptocurrency by market capitalization and has seen its price surge to over $255, approaching its all-time high of $259 recorded in 2021.

The growing trend in crypto ETFs

ETFs have become a popular investment vehicle for providing indirect exposure to cryptocurrencies, and Bitwise has already made its mark with Bitcoin and Ethereum ETFs trading on US stock exchanges.

Solana’s inclusion would expand Bitwise’s product portfolio, capitalizing on the increasing interest in blockchain technologies beyond Bitcoin and Ethereum.

The Solana blockchain has gained prominence for supporting decentralized applications (dApps), games, and meme coins, often compared to Ethereum due to its cheaper and faster transactions. This utility has attracted developers and investors alike, further driving the demand for financial products tied to Solana’s performance.

Solana ETF approval optimism driven by political developments

The timing of the filing is noteworthy, as it coincides with heightened market optimism linked to political shifts in the United States. Former President Donald Trump’s election has sparked hope for a more crypto-friendly regulatory environment, given his campaign’s pro-crypto stance.

This optimism has been further bolstered by the announcement of SEC Chair Gary Gensler’s planned resignation on January 20, 2025, coinciding with the start of Trump’s second term.

Market participants anticipate that a Trump-appointed SEC chair will adopt a more favorable approach toward crypto assets, potentially paving the way for the approval of spot ETFs tied to digital currencies like Solana.

Ripple’s Chief Legal Officer has made a post on X saying the next SEC chair should “End all non-fraud crypto litigation on Day 1,” among other thing.

A lot of unsolicited advice on here about who should (or shouldn’t) be the next SEC Chair. I trust the transition team to make the right call with these table stakes for crypto in mind:
1.End all non-fraud crypto litigation on Day 1.
2.Get commitments from Commissioners Uyeda and…

— Stuart Alderoty (@s_alderoty) November 21, 2024

Several other companies have filed for Solana ETFs

Bitwise isn’t the only player eyeing a Solana ETF. Other major asset managers, including Canary Capital, VanEck, and 21Shares, have also filed for similar products.

While Solana ETFs were previously viewed as a challenging proposition due to the SEC’s classification of Solana as an unregistered security, the changing regulatory landscape appears to have altered these expectations.

Although the filing in Delaware represents an early stage in the approval process, Bitwise will need to submit additional documentation to the SEC before the fund can become a reality.

The approval of Bitcoin spot ETFs earlier this year demonstrated the SEC’s willingness to engage with crypto-based investment products, and the market is now watching closely to see if Solana will follow suit.

With political winds shifting and Solana surging, the coming months could mark a pivotal moment for both the asset and the broader market.

The post Bitwise files for Solana ETF in Delaware appeared first on CoinJournal.

• FTX plans to start distributing $16 billion to creditors by March 2025.
• Distributions will begin 60 days after the Chapter 11 plan becomes effective in Jan.
• Customers must complete KYC verification and submit tax forms to receive payments.

The FTX estate, now under the leadership of CEO and Chief Restructuring Officer John J. Ray III, has revealed plans to begin distributing assets to creditors and customers by March 2025.

This follows a two-year period of intense recovery efforts after the collapse of the cryptocurrency exchange due to corporate mismanagement and fraud, which rocked the crypto world.

Ray, who stepped in after founder Sam Bankman-Fried filed for Chapter 11 protection in late 2022, has overseen the successful recovery of approximately $16 billion in cash and cryptocurrencies for the estate.

FTX distribution timeline

The timeline for distributions, outlined in a recent press release, marks a significant milestone in the lengthy process of compensating FTX’s creditors.

The company expects its Chapter 11 Plan of Reorganization to become effective in early January 2025, with the first distributions to begin within 60 days thereafter.

A key date in the process will be the distribution record date, which will coincide with the effective date of the reorganization plan.

To ensure they receive their share, customers must complete Know Your Customer (KYC) verification, submit required tax forms, and establish an approved account with one of FTX’s specialized distribution agents.

FTX’s restructuring efforts have been a lengthy and complex undertaking, but the company is now moving full steam ahead to distribute the recovered funds.

According to Ray, the process will be assisted by specialized distribution agents, who will help facilitate global payments to creditors and customers.

As part of the effort, FTX will finalize arrangements with these agents by early December, with specific instructions provided to customers through the existing portal.

While many creditors and customers will receive the majority of their assets back, the journey has been far from straightforward. The bankruptcy proceedings also saw Bankman-Fried convicted of fraud, sentenced to 25 years in prison, and facing appeals.

Meanwhile, other key figures in the scandal, such as co-founder Gary Wang and ex-Alameda co-CEO Caroline Ellison, received lighter sentences in exchange for their cooperation.

The FTX estate’s plan to distribute $16 billion signals a long-awaited resolution for many who were affected by the exchange’s collapse.

The post The FTX estate plans to start distributions by March 2025 appeared first on CoinJournal.

• Gary Gensler will step down on January 20, 2025.
• Solana, XRP among cryptocurrencies to spike amid the news.

US Securities and Exchange Commission Chair Gary Gensler has announced his resignation from the agency effective January 20, 2025.

Gensler announced his exit from the Commission in a press release on Thursday, Nov. 21, with this coming a few weeks after the US elections that saw Donald Trump win.

During the campaigns, Trump promised to fire the vastly unpopular and highly-criticised SEC chair “on day one” of his presidency. The crypto industry largely expected his exit.

The news of his exit saw several cryptocurrencies rise sharply, with Solana and XRP jumping more than 10% to $257 and $1.20 respectively. Ethereum was up 5% to $3,359 while Bitcoin hovered above $98,000.

Gensler to step down

Gary Gensler took over as the SEC chair on April 17, 2021, taking the helm as the securities market’s chief following appointment by the Joe Biden administration. In the press release announcing his departure, he wrote:

“I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favor. I’ve greatly enjoyed working with my fellow Commissioners, Allison Herren Lee, Elad Roisman, Hester Peirce, Caroline Crenshaw, Mark Uyeda, and Jaime Lizárraga. I also thank Congress, my colleagues across the U.S. government, and fellow regulators around the world.”

Gensler also posted about his resignation in a thread on X.

One of the things the SEC came to be known for under his tenure was the regulation by enforcement approach that threatened to cripple the US crypto industry.

The SEC filed multiple cases against top crypto companies, including Coinbase, Binance and Kraken. Gensler also continued the lawsuit his predecessor filed against Ripple in December 2020 – which the regulator ultimately lost.

Gensler also came under fire following the dramatic collapse of FTX, which imploded in November 2022 and has seen five ex-FTX officials jailed or sentenced to time served.

The post SEC Chair Gensler to step down on January 20 appeared first on CoinJournal.